Shemaria Law Offices

Former Union Boss Agrees to Plead Guilty in Scheme to Defraud Non-Profit Formed by Another Union Leader

Aug 31, 2009

The former president of Service Employees International Union, Local 660, has agreed to plead guilty to federal charges in a scheme that defrauded a non-profit organization formed by another labor leader through the use of bogus consulting contracts.

In a plea agreement filed this afternoon in United States District Court in Los Angeles, Alejandro Stephens, 65, a resident of the Koreatown District of Los Angeles, agreed to plead guilty to two counts of mail fraud and one count of filing a false federal income tax return.

The case against Stephens stems from his participation in a scheme to defraud a non-profit group called the Voter Improvement Program (VIP), which was formed in the late 1990s by M.C., the late executive secretary/treasurer of the Los Angeles County Federation of Labor. According to court documents, M.C. entered into sham consulting agreements with Stephens and four Stephens associates, and VIP paid theconsultants for work they never performed. Stephens associates gave the bulk of the money received from VIP to Stephens, who received more than $50,000 in this manner. Stephens then failed to report the extra income on his federal income tax returns.

This case was investigated by the U.S. Department of Labor, Office of Labor Racketeering and Fraud Investigations; the Federal Bureau of Investigation; and IRS-Criminal Investigativon. The Department of Labor's Office of Labor Management Standards provided assistance.

Stephens is expected to make his initial court appearance on September 15.

Each count of mail fraud carries a statutory maximum penalty of 20 years in federal prison, and the tax charge carries a statutory maximum sentence of three years in federal prison.

No Comments

Leave a comment
Comment Information

Call 424-285-5988 Today For The Tough Defense You Need

Email Us For A Response

Time To Take Back Control

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

9171 Wilshire Blvd
Suite 500
Beverly Hills, CA 90210

Toll Free: 800-898-9555
Phone: 424-285-5988
Fax: 310-988-2627
Beverly Hills Law Office Map